Did Elon Musk Kill the Consumer Bureau?
Oligarchy Defense Initiative in full force
Yesterday, I reported that the Oligarchy Defense Initiative - otherwise known as DOGE - was wreaking havoc at the Consumer Financial Protection Bureau (CFPB).
You know, the group that has returned $21 billion to consumers since 2011. The one that has taken on Big Banks like Wells Fargo. The one that shuts down payday predators and ensures fintech startups play by the rules.
Well, apparently, Chief Oligarch Elon is not a fan.
It’s not clear why Musk and his boy Trump don’t want consumers to have a fighting chance. Except, well, it is pretty clear: They don’t want anyone to get in the way of their ability to play Reverse Robinhood.
Musk took to his media platform - X - to render his verdict on CFPB:
Musk is already getting a bit of a free pass thanks to Treasury Secretary Scott Bessent:
The secretary is serving as acting director of the CFPB, which since Monday, February 3, has had practically all of its professional activities put on hold. That order to essentially stop working came in an all-hands email from Bessent’s office in his capacity as acting director. It said that no proposed or final rules, formal or informal guidance, enforcement actions or settlements, public communications including research paper releases, or litigation filings and appearances could be conducted, unless Bessent expressly approved them. This stasis would continue indefinitely, pending a review “in order to promote consistency with the goals of the Administration.”
But the next day, an update to that February 3 email went out, adding an additional restriction. The update, according to the email obtained by the Prospect, states that CFPB is “not to initiate supervisory designation proceedings or designate any nondepository institution for supervision.”One tech firm moving toward “larger participant” status in payment apps is X, formerly known as Twitter, which its CEO Musk envisions as an “everything app,” like WeChat in China. X recently signed a deal with Visa to support real-time payments through the X Money Account, which is due to launch later in 2025. Users would be able to make peer-to-peer payments with the account, which would connect to a debit card.
By stalling designation of nondepository institutions, Bessent ensures that X will not be designated for CFPB supervision, at least in the near term.
In other words, if the CFPB were allowed to do its job, Musk and his band of marauders would face strict scrutiny - and not just be able to screw consumers out of cash.
By halting their work for now - and, apparently, killing CFPB in the long-term - Musk and other fintech bros will avoid any accountability.
Consumers lose, oligarchs win. That’s the Musk-Trump way.
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